United States: Tech company Zoom, which gained notoriety when the Covid-19 pandemic hit and many businesses turned to remote working, on Tuesday announced plans to lay off 1,300 employees.

CEO Eric Yuan informed Zoom staff in a message that the business must adjust to "the uncertainty of the global economy" and "its impact on our customers." In afternoon trading, Zoom stock shares rose more than 7%.

"We put in a lot of effort to make Zoom better for our users and customers. However, we weren't perfect either," Yuan acknowledged in the Zoom blog.

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We didn't spend as much time as we should have deeply analyzed our teams or determined whether we were continuing to expand in the direction of our top priorities.

According to Yuan, the layoffs affect 15% of the company's workforce.

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According to the CEO, the company increased its workforce during the pandemic as businesses relied more and more on its service as people worked from home.

To meet demand, Zoom tripled in size in just 24 months. He added that despite the pandemic, businesses still rely on its service and adjustments are needed.

In addition, Yuan announced that he would forgo his 2023 corporate bonus and reduce his salary by up to 98% for the upcoming fiscal year, due to both the mistakes made by the San Jose, California-based business and its subsequent actions. Will claim responsibility for.

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The executive leadership team at Yuan is also forgoing its 20 percent corporate bonus for 2023 and reducing its base salary for the upcoming fiscal year.